By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 4 (CNS Canada) – ICE Futures Canada canola contracts were holding onto small gains in most months at midday Wednesday, despite sharp losses in the Chicago Board of Trade soy complex.
News that China would impose 25 per cent tariffs on soybeans from the United States as part of an escalating trade dispute between the two countries weighed heavily on CBOT soybeans, which initially spilled into canola.
However, canola managed to move above unchanged amid ideas that the China/U.S. spat could create export opportunities elsewhere. China was already looking for alternatives to U.S. soybeans, with canola basis levels in Vancouver rising to C$60 above the futures from C$40, according to market participants.
The Canadian dollar was slightly weaker Wednesday morning, which added to the firmer tone in canola.
However, large old crop supplies and expectations for increased acres this spring did put some pressure on values.
About 24,000 canola contracts had traded as of 10:46 CDT.
